Wheeler LLC purchased two assets during the current year (a full 12 month tax year) On November 16 Wheeler placed in service computer equipment (five year property) with a basis of $19,000 and on April 20 placed in service furniture (seven year property) with a basis of $13,400 Calculate the maximum depreciation expense (ignoring 179 and bonus depreciation) (Use MACRS Table 2 ) (Round final answer to the nearest whole number ) Multiple Choice $1,913 $3,342 $5,200 $5,828 None of the choices are correct TABLE 2a MACRS Mid Quarter Convention For property placed in service during the first quarter Depreciation Rate for Recovery Period 5 Year 7 Year Year 1 35 00 25 00 Year 2 26 00 21 43 Year 3 15 60 15 31 Year 4 11 01 10 93 Year 5 11 01 8 75 Year 6 1 38 8 74 Year 7 8 75 Year 8 1 09 TABLE 2b MACRS Mid Quarter Convention For property placed in service during the second quarter Depreciation Rate for Recovery Period 5 Year 7 Year Year 1 25 00 17 85 Year 2 30 00 23 47 Year 3 18 00 16 76 Year 4 11 37 11 97 Year 5 11 37 8 87 Year 6 4 26 8 87 Year 7 8 87 Year 8 3 34 TABLE 2c MACRS Mid Quarter Convention For property placed in service during the third quarter Depreciation Rate for Recovery Period 5 Year 7 Year Year 1 15 00 10 71 Year 2 34 00 25 51 Year 3 20 40 18 22 Year 4 12 24 13 02 Year 5 11 30 9 30 Year 6 7 06 8 85 Year 7 8 86 Year 8 5 53 TABLE 2d MACRS Mid Quarter Convention For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5 Year 7 Year Year 1 5 00 3 57 Year 2 38 00 27 55 Year 3 22 80 19 68 Year 4 13 68 14 06 Year 5 10 94 10 04 Year 6 9 58 8 73 Year 7 8 73 Year 8 7 64

The Answer is in the image, click to view ...

Question: Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment (five-year property)

Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment (five-year property) with a basis of $19,000 and on April 20 placed in service furniture (seven-year property) with a basis of $13,400. Calculate the maximum depreciation expense (ignoring 179 and bonus depreciation). (Use MACRS Table 2.) (Round final answer to the nearest whole number.)

Multiple Choice

$1,913
$3,342
$5,200
$5,828
None of the choices are correct.

TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter

Depreciation Rate for Recovery Period
	5-Year	7-Year
Year 1	35.00%	25.00%
Year 2	26.00	21.43
Year 3	15.60	15.31
Year 4	11.01	10.93
Year 5	11.01	8.75
Year 6	1.38	8.74
Year 7		8.75
Year 8		1.09

TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter

Depreciation Rate for Recovery Period
	5-Year	7-Year
Year 1	25.00%	17.85%
Year 2	30.00	23.47
Year 3	18.00	16.76
Year 4	11.37	11.97
Year 5	11.37	8.87
Year 6	4.26	8.87
Year 7		8.87
Year 8		3.34

TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter

Depreciation Rate for Recovery Period
	5-Year	7-Year
Year 1	15.00%	10.71%
Year 2	34.00	25.51
Year 3	20.40	18.22
Year 4	12.24	13.02
Year 5	11.30	9.30
Year 6	7.06	8.85
Year 7		8.86
Year 8		5.53

TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter

Depreciation Rate for Recovery Period
	5-Year	7-Year
Year 1	5.00%	3.57%
Year 2	38.00	27.55
Year 3	22.80	19.68
Year 4	13.68	14.06
Year 5	10.94	10.04
Year 6	9.58	8.73
Year 7		8.73
Year 8		7.64

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

1. Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment (Five-year property) with a basis of $25,500 and on...

5 points Time Remaining 3 8 minutes 4 4 seconds 0 0 : 3 8 : 4 4 Item 8 Time Remaining 3 8 minutes 4 4 seconds 0 0 : 3 8 : 4 4 Wheeler LLC purchased two assets during the current year ( a full 1 2 -...

The MACRS recovery period for automobiles and computers is: Multiple Choice three years. five years. seven years. ten years. None of the choices are correct. The MACRS recovery period for automobiles...

Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment (five-year property) with a basis of $22,500 and on...

Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment (five-year property) with a basis of $20,000 and on...

Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment (five-year property) with a basis of $26,500 and on...

Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment (five-year property) with a basis of $19,500 and on...

Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment (five-year property) with a basis of $15,000 and on...

For each of the following accounts, determine its classification on the balance sheet using the following classifications. Use OOE for other owners equity items that are not contributed capital or...

Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is $1,175. The bonds may be called...

As discussed in the Adapting to Change box, What s the Controversy over ESG Investing All About?, business leaders have universally embraced the concept of ESG investing as it helps their bottom...

B. [15 points] For each of the following operations: - Choose the most suitable data structure based on the worst-case running time. - Give a high-level description of how this operation can be...